There’s a lot of information available for businesses on how they can save both time and money. From improving productivity to choosing and licensing the right technology and software, businesses of any size certainly have lots of options available. In this article, we’re going to address a topic that many businesses overlook when it comes to saving time and money. That topic is the adoption and use of standardized contracts. Believe it or not, hiring an experienced attorney to create standardized contracts for your business really does make a difference.
Related: Deal with It! 5 Problems Businesses Should Never Ignore
What Is a Standardized Contract?
A standardized contract, also known as a standard contract or standard contract form, is defined as a pre-printed contract that contains specific clauses. It can be used as-is or minor changes can be made to modify the agreement to make it more suitable to the parties involved.
How a Standardized Contract Saves Businesses Time
Standardized contracts save businesses time by acting as a tool that businesses can use for common business scenarios where they must use a contract. For example, a hospital or healthcare network contracts with various vendors for the delivery of certain foods so that the food staff have what they need to create meals for patients as well as staff. Instead of drafting a brand new contract for every single vendor used, which would take substantial time and effort, the hospital or healthcare network could rely on a standardized contract that covers all of the essential points between the parties.
The legal team, administrative team, and management team all save time by relying on a contract that doesn’t need to be written from scratch or fully reviewed. They can fill in the blanks to make any necessary changes between the vendors (such as changing the vendor names, products provided, how those products are provided, and price), execute the contract, and ensure that both the vendor and the hospital or healthcare network receives a copy of the finalized contract.
How a Standardized Contract Saves Businesses Money
Standardized contracts save businesses money because they are drafted once and used over and over again. Of course, most businesses may have more than one standardized contract that they use throughout the course of the businesses. Yet, because those contracts can be used as many times as needed, this cuts down on the expense the business may incur by hiring a lawyer every time they need a contract written.
Another way a standard form of contract reduces expenses is because they are meant to be sent out as is (primarily) and for the other parties involved to complete and return. Since they are designed to offer services or goods exactly as written in the contract, the expenses associated with having the agreement negotiated and reviewed is drastically reduced if not fully eliminated in most instances.
They Make Business Life Easier!
Standardized contracts have the potential to make business life easier overall. They’re a tool that benefit most businesses. Yet, it’s important to make sure that the standardized contracts are drafted specifically to meet the needs of the business. Here at Larsen Law, we don’t rely on scare tactics, but we do work to provide the facts so that businesses can make an informed decision related to their needs. The internet has given everyone access to examples and templates of standardized contracts in practically every industry. Yet, there are a few troubling concerns that all businesses know. The first concern is whether the document has all of the clauses you need. The second concern is that the forms may not have been created by a lawyer. The third concern is that the forms may not in compliance with any updated laws or regulations related to the industry as well as passed by the state or federal government. While templates and forms may be educational in nature, they may not truly benefit or protect a business.
Because of that, it is important for businesses to consult with a contract attorney who is experienced in drafting standardized contracts in the industry the business is involved in.
What Are Some of the Clauses Found in Standardized Contracts?
Before we answer this question, you should know that businesses have different needs. The clauses right for the needs of one business may be different from the clauses needed by another business even if it is in the same industry. The information below is shared for educational purposes only. To learn more about the clauses you may need in a standardized contract for your business, call Larsen Law now at 303-520-6030.
Choice of law. This clause determines which state’s laws and regulations will be used if the parties have a disagreement over the contract.
Jurisdiction. This clause determines where any lawsuit related to a disagreement involving the contract must be filed.
Arbitration. Many standardized contracts include an arbitration clause. This clause states that the parties must first enter into alternative dispute resolution to attempt to resolve their disagreement before a lawsuit may be filed.
Indemnification. This clause determines which party (or if both parties) shall cover the costs associated with certain disagreements resulting from the contract if those disagreements arise with a third-party who is not a party to the contract.
Warranties. This clause explains whether there are any promises or assurances made by the involved parties related to certain contractual obligations.
Confidentiality. This clause states that one or more parties involved in the contract cannot share certain information.
Assignment. This clause states whether any involved party has the power to sell or transfer their rights afforded to them to another party.
Severability. This clause allows the rest of the contract to remain in effect if an invalid clause is removed.
Larsen Law: Providing Standardized Contracts for 30 Years
Larsen Law has provided standardized contracts to businesses for the last 30 years. To learn more about how standardized contracts can benefit your business, call Larsen Law now at 302-520-6030 to schedule your consultation.